Executive Summary
FDI plays a crucial role in the economic growth and development of nations across the globe
This report aims to explore the relationship between FDI and the UK economy, ranking the top 50 cities for their attractiveness to overseas investors and providing a detailed insight the top 10 locations.
The report will assist potential investors in understanding the legal and regulatory environment surrounding FDI in the UK. It covers various aspects of investing in the UK, from a focus on the key sectors to the increasing importance of ESG and green investments.
"This report reflects the enthusiasm I hear from foreign investors every day: the UK is one of the best places in the world to invest, and it is a fantastic springboard to start and grow a successful business.
"I'm particularly delighted to see in this report - and indeed the government's own recent statistics - the huge growth in FDI projects outside London, particularly in Scotland, the North of England, the Midlands and the South West. It is clear that investors are looking up and down the UK for high growth investment opportunities in our strongest industries with highly skilled workforces, which is creating jobs, growing local economies and helping to level-up the country.
"We now look ahead to this autumn’s Northern Ireland Investment Summit and the Global Investment Summit, which will bring together some of world’s biggest players to invest in our most thriving sectors."
Lord Johnson
Minister for Investment
Department for Business & Trade
Key findings
The UK’s inward FDI position stood at £2,002 billion in 2021, up from £1,919 billion in 2020.
The USA is the biggest source of FDI, with its £676 billion stock accounting for 34% of the total UK inward FDI stock.
The French investment position in the UK increased in 2021, to stand at £101 billion, up by £5 billion on 2020 levels. This puts it as the fourth largest country investor into the UK. The utilities sector makes up a large share of the investment, at £21 billion.
Financial services dominates FDI in the UK, with £596 billion attributable to that industry – equal to over 30% of all inward FDI in the UK.
1st
London is the top city for investment attractiveness, with inner London the most attractive for investment. This corroborates the evidence on regional investment finding that London attracts the most FDI in the UK. Inner London ranks particularly highly for local skills, with a large economically active population and many well-respected universities.
